Theme session on new business models of unlocking gas potential held at Petrotech 2019
Dated : 10 February 2019 08:05:00 PM
Natural Gas is a large part of the energy mix sitting at the power center but India’s scenario is slightly different. India as a country has huge stake in the hydrocarbon industry. The condition of the energy market as per the last six months has been bad, lot of energy projects were downsized. The main concern for India right now is the scale of natural gas, i.e., 6.2% which is comparatively low and it has come down by 10% in the last five years. Whereas Gujarat has market share of 25% of natural gas.
The Government is optimistic and has issued a mandate that the sale of natural gas must increase to 15% by 2030. The question is, if the international price for crude oil can be paid, then why the international price for natural gas cannot be paid.
Potential ways to increase the sale of Natural Gas are:
- Increasing demand and supply side by side. LNG industry focuses largely on demand and supply which is also one of the major elements affecting the industry and by popular opinion, increasing supply will work in favour of the concern.
- Construction and use of long distance pipelines.
- Working on creating CGD infrastructure.
- Resetting gas prices: Moving market price instead of administered prices.
Two-third of the country does not have access to natural gas. Panellist Rajeev Mathur suggested enough creation of natural gas in the country as a solution to the concern.
Necessary steps have to be taken to enhance the scope of natural gas in India like making natural gas a mandate as energy mix. To conclude Panellist Peter Lambert talks about the huge role natural gas can play in the coming years and he is optimistic about the LNG industry and its potential developments.